Portugal: National Inspection Action Regarding Wage Disparities Between Men and Women

Companies Notified by ACT Must Submit a Wage Disparity Assessment Plan Within 120 Days.

The Authority for Working Conditions (ACT) has notified approximately 3,000 companies, requiring them to submit a wage disparity assessment plan within 120 days. This requirement is in compliance with Article 5 of Law No. 60/2018, which mandates transparency and corrective measures regarding gender pay gaps.

This notification follows the identification of potential wage discrepancies through the statistical analysis of the 2023 Annual Report (Relatório Único). Companies found to have unexplained wage differences between male and female employees must take action to justify or address these disparities.

Failure to submit an action plan or provide a valid justification for the identified wage differences may result in administrative penalties.

Given the implications of non-compliance, companies are advised to conduct a thorough review of the statistical report provided by ACT and implement a structured action plan to ensure alignment with labour law requirements.

For businesses affected by this inspection, proactively addressing wage disparities will not only ensure compliance but also reinforce corporate commitment to fair and equitable employment practices.